Business
‘Used car imports could capture 50% of market’ | The Express Tribune
PAAPAM says rising influx threatens Rs300b local production, 1.83m jobs as reduced duties distort competition
The commerce minister directed industry stakeholders to submit comprehensive proposals for a long-term automotive policy aligned with national industrial goals. Photo: file
LAHORE:
Pakistan’s local automobile industry has sounded a loud alarm over rising used-car imports, warning that the market share of imported vehicles could soar to 50% if current fiscal and import policies continue unchecked. The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) fears this surge would cripple local production and dismantle the industrial ecosystem that took decades to develop.
“Industry data indicate that used-car imports have already captured around one-quarter of the domestic market. If current policies persist, this share could surge to 50% within a short period,” said Shehryar Qadir, Senior Vice Chairman of PAAPAM. “That means every second car sold in Pakistan would be an imported used vehicle, effectively displacing local production capacity and threatening the sustainability of OEMs and their supplier networks.”
The association’s concerns come amid fiscal adjustments that have reduced effective duties and taxes on imported used cars, enabling importers to bring in vehicles at much lower prices than locally assembled units. Many of these imported cars are older and undervalued but enter the market as low-cost options that distort competition. Local manufacturers continue to pay full duties and comply with domestic safety and emission standards, creating an “uneven and unsustainable playing field.”
“This steep drop in import taxes undermines the government’s industrialisation objectives and erodes the competitiveness of domestic assemblers who have invested heavily in localisation, employment and technology transfer,” Qadir said.
According to PAAPAM’s latest diagnostic report, Pakistan’s auto parts industry binds together over 1,200 Tier-1, Tier-2 and Tier-3 suppliers, supporting 1.83 million skilled jobs, including around 300,000 directly in the auto parts segment. The sector anchors localised production valued at more than Rs300 billion annually. It substitutes roughly $1.25 billion worth of imports every year. Over Rs100 billion has been invested by local vendors in plant and tooling. The industry has achieved localisation levels of up to 60% in several vehicle categories.
“Imported used cars introduce a double-down effect on depreciation,” Qadir explained. “These vehicles are already aged and lose value quickly, depressing overall market prices and diminishing resale values for new locally manufactured cars. This artificially deflated market discourages customers from purchasing new vehicles and erodes manufacturers’ margins.”
Pakistan’s automotive sector is already under pressure from sluggish demand, expensive financing and high energy costs. Car sales dropped by more than 40% in the last two fiscal years, largely due to record-high interest rates and inflation that curtailed consumer buying power.
“Used-car liberalisation might appear to offer short-term relief to consumers, but it’s economically destructive,” said Dr Nishat Alam, an independent economist and auto-sector analyst. “Every imported vehicle adds to the current account deficit, displaces local jobs and drains value from the supply chain built painstakingly over decades. If localisation unravels, the country could face a permanent $1 billion annual import shock.”
“The government must decide whether Pakistan will remain a dumping ground for second-hand imports or evolve into a strong regional manufacturing hub,” Qadir said.
Oven Pride household goods group McBride has revealed “temporary” price hikes to cover increased costs from the Iran war and warned it was seeing the first signs of supply shortages caused by the conflict.
The group, which makes branded and white label household and cleaning products for the likes of Tesco and Sainsbury’s, said until now it had only seen a small impact from higher haulage costs due to fuel price rises, but said “these conditions have now started to change”.
It said the “most heavily impacted” chemical and packaging suppliers are pushing through price increases as they face rising costs for petrochemical-derived feedstocks and higher energy costs in chemical and packaging production.
“The first signs of possible shortages in supply chains around the world are beginning to emerge,” it added.
McBride said its costs are increasing this month and will rise further due to the war, and is set to lift prices to offset the hit.
“The group has already informed all customers about temporary price adjustments, or surcharges to current pricing, to recover these higher, beyond our control, cost impacts from the Middle East conflict,” McBride said.
The warnings come amid mounting worries over the impact of the conflict on supply and costs, having sent oil prices surging above 100 US dollars a barrel and causing widespread disruption to global shipping.
Supermarkets met with Chancellor Rachel Reeves and Energy Secretary Ed Miliband at No 11 on Wednesday to look at issues caused by the war and agreed to explore together how to ease the cost-of-living impact for consumers.
McBride’s comments came in an update as it also announced a £34.5 million deal to buy Eurotab – a French-based specialist in cleaning tablets, such as for dishwashers.
Tiger Woods of Jupiter Links Golf Club looks on before the match against the Los Angeles Golf Club at SoFi Center in Palm Beach Gardens, Florida, March 24, 2026.
Adam Glanzman | TGL Golf | Getty Images
Tiger Woods’ future in professional golf remains unclear as he seeks treatment after a rollover car crash last week.
Woods was arrested for a DUI after the accident in Jupiter Island, Florida, his second rollover in five years, and said in a statement on X that he would be stepping back from golf “to return to a healthier stronger, and more focused place.”
Woods did not provide a timeline for his return, only that he would be stepping away for a “period of time.”
On Wednesday, the PGA of America announced that Woods will no longer serve as captain of the 2027 U.S. Ryder Cup Team.
“We support his decision,” the PGA of America said in a statement on X. “We commend Tiger for prioritizing his long-term health and deeply respect the courage it takes to make such a personal decision.”
The latest developments leave Woods at least temporarily at the fringes of the sport that made him a household name. The golf community has rallied around the sport’s biggest star as he vows to “focus on his health,” and the PGA Tour said in a statement that Woods has the organization’s full support.
“Tiger Woods is a legend of our sport whose impact extends far beyond his achievements on the course. But above all else, Tiger is a person, and our focus is on his health and well‑being,” the tour said.
Off the course, Woods has been serving as chairman of the PGA Tour’s Future Competition Committee since August. That group has been responsible for creating a vision for the future of professional golf.
A PGA Tour spokesperson said that Woods will return to that role when he is ready to do so.
Golf Channel analyst and former tour pro Brandel Chamblee suggested it could be time for Woods to consider retirement following his latest accident. Woods, 50, has been recovering from various injuries sustained in his car crash in 2021.
“Why would he need to play golf anymore?” Chamblee asked Friday on the Golf Channel’s “Golf Central.” “I think he should probably ask himself that. Consider not playing golf anymore.”
Until Friday’s accident, Woods held onto hope that he would compete in the upcoming Masters Tournament this month.
Augusta National Golf Club Chairman Fred Ridley confirmed this week that Woods would not play.
“Although Tiger will not be joining us in person next week, his presence will be felt here in Augusta,” Ridley said. “Augusta National Golf Club and the Masters Tournament fully support Tiger Woods as he focuses on his well-being.”
TGR, Woods’ education foundation, said it remains committed to serving its students and communities.
“Our thoughts are with our founder as he takes the time needed to focus on his health,” its CEO Hrag Hamalian said in a statement.
Woods’ apparel brand, Sun Day Red, also voiced its support this week.
“He is not just our partner, he is our friend. We are here for him and we remain focused on the work we are building together,” the company said in a post on the Meta-owned Threads platform.
TGL, the indoor golf league founded by Woods and Rory McIlroy, declined to comment about Woods’ hiatus and potential return.
Woods made his first TGL playing appearance of the season for the Jupiter Links team last week in front of a notable audience. ESPN said nearly 1 million viewers tuned in to watch Woods’ return, making it the largest audience this season.
A Sam’s Club in Miami, July 7, 2025.
Joe Raedle | Getty Images
Walmart-owned Sam’s Club said Wednesday it will raise its annual membership fee by $10.
Starting on May 1, the warehouse club — which directly competes with Costco and BJ’s Wholesale Club — will charge $60 per year for basic membership and $120 for its higher-tier option. It currently charges $50 for club members and $110 for Plus members and last raised annual fees in October 2022.
In a statement, Sam’s Club said it has “adjusted our membership pricing to support the things our members love,” citing perks including its assortment, expanded hours and better curbside pickup and delivery options.
Still, those new fees will be below those of rival Costco, which charges $65 per year for its basic membership and $130 per year for its higher-tier option. Costco hiked its fees in 2024. The fees bring Sam’s Club in line with BJ’s, which charges $60 per year for its basic membership and $120 per year for its higher-tier membership.
Sam’s Club is hiking membership fees as its annual sales and membership grow. Net sales for Sam’s Club in the U.S. grew by about 3.1% to $93 billion last fiscal year, according to Walmart’s fourth-quarter earnings report. That growth has come in part from an expanding digital business: In the holiday quarter, the warehouse club’s e-commerce sales increased by 23% year over year. Store and website visits increased, too, with transactions rising 5.3% year over year in the same quarter.
Higher gas prices, driven by the Iran war, have drawn more attention to one of warehouse clubs’ key perks: cheaper prices at the pump. Gas prices hit a nationwide average of $4.018 this week, according to travel association AAA. That’s the highest price since August 2022, when the Russia-Ukraine war drove up energy prices.
Sam’s Club does not disclose its membership count, but said that it hit a record high in the three-month quarter that ended Jan. 31. Membership for the retailer is estimated to be more than 30 million, with a similar proportion of members opting into the higher-tier level as at Costco, according to David Bellinger, a retail analyst for Mizuho Securities.
Based on the equity research firm’s estimate, the membership fee increase could bump up annual income from the subscriptions by more than $200 million. That would translate to a 2 cent annual earnings per share lift for parent company Walmart.
Membership fee increases for current members will take effect when they renew at the end of their billing cycle. Sam’s Club said it emailed members about the fee increase on Tuesday.
As part of the fee change, Sam’s Club said members of its higher-tier level, called “Plus,” will be able to earn up to $750 per year in Sam’s Cash rewards on eligible purchases, up from $500 per year.
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